May 2026: 1.47% (B+ grade)

Idaho inventionINDEX May 2026: 1.47% (B+ grade)

The inventionINDEX measures innovation output by comparing GDP growth with patent production growth. 

Anything over C grade is positive sentiment; anything under C is negative outlook/sentiment. Using that sentiment, it is possible to observe trends over time, and also compare states/countries. In doing so, we can predict which states have the best chance to recover economically from the pandemic (or any other economic incident that may occur).

Idaho inventionINDEX Scores – Last 12 months

The Idaho inventionINDEX for May 2026 reached 1.47%, capturing a B+ rating and showcasing a noticeable upward trajectory as the state enters the mid-year period. This latest figure represents a solid recovery from April 2026, which recorded a softer mark of 1.27% and a B- rating. The positive movement in May breaks a period of steady moderation observed during the first quarter of the year, where January and February held flat at 1.31% before a minor increase to 1.39% in March. This escalation suggests that the regional invention ecosystem is regaining its footing and pulling away from the minor plateau that characterized the opening of 2026.

When analyzed within a wider 60-month historical scope, the current index reflects a more balanced and consolidated operational level compared to the radical fluctuations of prior years. The overall historical average across this five-year span sits at approximately 1.71%, which places the May 2026 performance slightly below the long-term baseline but comfortably ahead of the declining trajectory seen throughout 2025, which averaged 1.42%. Looking back, Idaho’s innovation metrics have historical precedents of extreme volatility, most dramatically illustrated in mid-2023 when the index collapsed to its absolute floor of 0.11% (F rating) in June, only to surge to an all-time peak of 4.29% (A+ rating) the very next month in July 2023. In comparison to these historical extremes, the current stabilizing trend within the B-tier hints at a maturing ecosystem that is moving away from erratic shifts toward sustainable advancement.

Achieving higher scores and securing top-tier grades within the inventionINDEX yields substantial positive outcomes for Idaho’s regional economy. When the index consistently achieves elevated marks, it signals a highly productive research and development landscape, robust patent filings, and a rapid commercialization of novel technologies. This premium performance is an essential indicator for external venture capital firms, angel investors, and large corporate partners who look to deploy resources in innovative geographical hubs. Furthermore, an elevated innovation grade directly fuels job expansion in high-wage engineering and technical fields, encourages university-sponsored spin-offs, and boosts the state’s structural competitive edge on a national scale.

Conversely, dropping into lower tiers or sustaining depressed innovation scores carries distinct negative implications for long-term economic vitality. A contraction into low ratings implies structural bottlenecks within the creative pipelines, a deceleration in municipal corporate R&D funding, or a cooling of local entrepreneurial enthusiasm. If an economy remains locked in these lower ranges, investor confidence can quickly erode, resulting in capital flight toward more proactive neighboring markets. Additionally, a stagnant innovation climate risks causing a talent drain as local inventors, engineers, and researchers seek out regions with more dynamic capital availability, ultimately slowing down industrial diversification and hindering overall macroeconomic resilience.

Discussion:

In May, the Idaho inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the downward trend for the year. This is similar to the prior 12 months, which experienced a downward trend. 

As the economy continues to stabilize in the post-pandemic era, it remains uncertain whether any backlog of applications still exists or if the department has returned to normal processing timelines. The inventionINDEX could also be affected by lingering consequences from the pandemic, such as company closures, reduced workforces, and limited R&D capabilities, which may still be impacting current operations.

Learn More:

Are you thinking of patenting any of your bright ideas? Did you know your research work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? To find out more, please check out our free online eligibility test.

Swanson Reed’s Idaho office provides R&D tax credit consulting and advisory services to Boise, Meridian, Nampa, Idaho Falls and Pocatello.

Feel free to book a quick teleconference with one of R&D tax specialists if you would like to learn more about R&D tax credit opportunities.

Who We Are:

Swanson Reed is the largest Specialist R&D tax credit advisory firm in the United States. With offices nationwide, we are one of the only firms globally to exclusively provide R&D tax credit consulting services to our clients. We have been exclusively providing R&D tax credit claim preparation and audit compliance solutions for over 30 years. 

Swanson Reed hosts daily free webinars and provides free IRS CE and CPE credits for CPAs.  For more information please visit us at www.swansonreed.com/free-webinars or contact your usual Swanson Reed representative.